Perception of failure: According to PwC, “fear of failure” is more common in Australia than
in the US. Being risk averse and viewing failure as a bad thing is a trait that sets us apart from
entrepreneurs in other developed economies. The discussion of possible failure and steps to
address it should be encouraged rather than shunned.
Many entrepreneurs cannot make their first idea stick, give up and get back into the workforce
as an employee assuming business isn’t for them. Entrepreneurs tend to fail because of lack of
proper preparation. Failure needs to be reflected upon so you can get it right the next time. Was
the product right for the market? Could it have been priced differently? Were you competitive?
How much research did you do? Were your expenses and investment significantly higher than your
returns?
Not every idea is brilliant and failure can teach us a lot. Reflection on the mistakes of the past gives
us the opportunity to learn and get it right the next time
Funding: Funding models in Australia need to change on two intrinsic levels: 1) increased awareness
of and requests for funding by entrepreneurs at nascent stage and, 2) more funding available at VC
stage.
Over 70% of nascent firms seek external funding in the initial stages, choosing instead to use their
personal savings and credit cards to fund their idea. We need more education on entrepreneurship
at a general level (addressed in the next point) so innovators across the board know how to get
funding at start-up stage.
On the other hand, Australia regularly loses smart innovators and successful businesses to the
US (especially tech start-ups) due to lack of a mature venture capital (VC) market. While it is easier
to start a business in Australia (compared to many other countries) and the network of angel and
VC investors is growing, we still have a long way to go in – especially in supporting businesses that
need over $5 million in capital. It is the rare successful global business such as 99designs that has
managed to maintain a presence locally whilst sourcing funding from the US.
Education: The University of Western Sydney recently started a first-of-its kind program called ‘The
Academy’ where students were brought together from different disciplines (medicine, law, arts,
etc.) for common academic learning. The program shapes new leaders of tomorrow by teaching
them skills that transcend sectors and specific roles. It teaches them to be achievers regardless of
changing economic climates.
Likewise, a fundamental change is needed in the education system to teach all students about
entrepreneurship. Beyond business schools, entrepreneurship has not been promoted well in
academic curriculum across all levels from high school to universities. This has to change if we want
more innovators to create successful businesses that stay on Australian shores.
Entrepreneurship needs to transcend from innovation and starting a business to creating a change
in society and remaining relevant not just now, but in the future.